Q. The presence of transaction costs in financial markets explains, in part, why
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(A)
financial intermediaries and indirect finance play such an important role in financial markets.
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(B)
equity and bond financing play such an important role in financial markets.
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(C)
corporations get more funds through equity financing than they get from financial intermediaries.
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(D)
direct financing is more important than indirect financing as a source of funds.
✅ Correct Answer: (A)
financial intermediaries and indirect finance play such an important role in financial markets.